Even if your company does not currently offer a health plan, beginning October 1, 2013, they will be required by the Department of Labor to notify their employees of their coverage options through the California exchange/marketplace called “Covered California.”

All Employers Must Notify You

Virtually all employers that do not offer health insurance are subject to this notification requirement.  There is an online tool for employers to determine whether they are subject to the Fair Labor Standards Act (FLSA).

Here’s What the Notification Will Say

The Dept. of Labor (DOL) will notify employers directly, but I’ve included the Model Notice for employers who do not offer a health plan. It basically tells the employee that even though their employer doesn’t offer coverage, they have the option of going to the “Covered California” health insurance marketplace, or a licensed agent such as me.

Employees: You Will Be Required to Obtain Health Insurance to Avoid a Tax Penalty

It’s also important to note that starting January 2014, most residents will be required to obtain health insurance to avoid a tax penalty of 1% of their annual taxable income or $95, whichever is greater. In later years, the penalty will rise to 2.5%.

Employers: Your Benefit Offers Will Affect Your Labor Pool

Because of the requirement, you can bet employees will have health insurance benefits on the top of their mind more than ever as they decide where they plan to work. Since they will have to pay out of pocket for their health insurance because they don’t have an employer sponsored plan, their decisions on where to apply for work and what offers to accept will be influenced by the benefits being offered.

Find the Best Coverage at the Best Price

Even if your employer does not choose to offer employee benefits, the next best thing they can do is guide their employees to a trusted agent to help them find the best coverage at the best price.

Please feel free to call me and share my blog with friends, family, and colleagues. I’m happy to provide clear and detailed information.